1

CONTENT

MESSAGE FROM 3
CHAIRMAN

MESSAGE FROM CEO 4

ABOUT PATA 6

HIGHLIGHTS OF 2016 7

ADVOCACY 10

EVENTS 13

MEMBERSHIP 21

HUMAN CAPITAL 24
DEVELOPMENT

STRATEGIC 31
INTELLIGENCE CENTRE

PATA FOUNDATION 34

SUSTAINABILITY & 39
SOCIAL RESPONSIBILITY

CHAPTERS 41

FINANCIAL 48

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 ANNUAL REPORT 2016
MESSAGE FROM
THE CHAIRMAN
This was the year in which the Pacific Asia Travel Association (PATA)
celebrated 65 years of service to the travel and tourism industry in
the Asia Pacific region. During this milestone anniversary it has been
a memorable time for me to serve as Chairman of PATA and have
the opportunity to work and share experiences with a large number of
tourism industry professionals and practitioners.

It was, without doubt, one of the special moments of my long standing

career in the hospitality sector to be elected Chairman of the Association,
and I am extremely grateful for the unswerving support given to me by
my fellow members of the PATA Executive Board who have always been
so willing to give their time and to share their considerable knowledge,
experience and expertise, as well as the PATA Board and Management
team.

During my term as Chairman of PATA I was very fortunate to have the opportunity to represent PATA at a variety of
international functions, conferences and travel trade events on many continents. I was also able to attend a number
of the PATA Chapter meetings, and interact with their members to discuss matters of mutual interest and share PATA
information. In doing so, it became clear that the Association enjoys worldwide recognition as an organisation that
can bring together the public and private sectors of our industry to promote responsible and sustainable tourism
development. Long may this continue.

I am happy that our mission to act as a catalyst for the responsible development of travel and tourism to, from and
within the Asia Pacific region is widely recognised, respected and appreciated by many tourism bodies, practitioners
and communities in our region.

Importantly, while celebrating our heritage as a dynamic association we are always looking to the future and we
continue to strive to deliver added value benefits to our members in the knowledge that this will ensure the Association
operates on a firm financial footing. I therefore commend our management team for their efforts in moving forward,
rejuvenating and maintaining the Association so that it is able to work effectively, efficiently and diligently in support
of its membership aspirations.

I take this opportunity to wish safe and happy travels to all and I look forward to seeing PATA continue to make a
substantial contribution to travel and tourism not only in the Asia Pacific region but also on the world stage.

Andrew Jones
Chairman
2016 – 2017

3
 MESSAGE FROM
THE CEO

Dr. Mario Hardy

Chief Executive Officer
Pacific Asia Travel Association
May 2017

4
Consolidation with steady growth to create a sustainable future
It gives me great pleasure to present the Pacific Asia Travel Association’s Annual Report for 2016. Our principal
objective in 2016 was to move seamlessly from the transformative position of the previous 12 months to a state of
steady progression whilst maintaining prudent financial management to ensure stability and to secure the Association's
long-term future.

In doing so we were seeking to create a stronger financial base from which to pursue our other strategic goals, namely
to build a strong and highly respected brand; to develop talent and people, and to increase engagement with members,
chapters and the tourism industry at large

The PATA brand was enhanced considerably in 2016. The busy calendar of events, including the Association’s signature
PATA Travel Mart, created another series of successful platforms for members to engage, to network, to build their
respective businesses and to promote towns, cities, provinces, resorts, territories and nations.

From Chiang Rai in Thailand to Guam USA, and from Banten province, Indonesia to Cox’s Bazar in Bangladesh,
each mainstream PATA event in 2016 exceeded expectations and made important contributions to the Association’s
improved financial position.

Worthy of special mention is the PATA Annual Summit in Guam that attracted record numbers of delegates to join
the Association’s 65th anniversary celebrations and to enjoy the lively and information discussions at the one-day
conference and half-day ministerial debate staged in conjunction with the United Nations World Tourism Organisation.

The importance of nurturing and developing talent is an essential prerequisite to ensuring that tomorrow’s tourism
leaders are well placed to meet the UN sustainability goals and other objectives.

The PATAcademy-HCD workshops in 2016 once again attracted a broad range of public and private sector delegates
to the Association’s Engagement Hub in Bangkok, learning in June how to capture an increase market share in the
100 million-plus China outbound travel market and, in December, addressing the art of storytelling – an increasingly
important aspect of modern day stakeholder communications.

We also announced a new membership category strictly for ‘young tourism professionals’ aged 18 to 35 years, effective
January 1st 2017, and we appointed a full-time ‘ambassador’ from within our staff ranks in Bangkok to reinforce the
Association’s commitment to this influential Human Capital stakeholder group. This initiative ensures that PATA's brand
is more readily recognised by younger generations, contributing to the long term sustainability of our organisation.

Engagement with members and other stakeholders is absolutely vital for any membership organisation. In 2016,
we strived to improve further the breadth and depth of our engagement with members through traditional and digital
communications platforms, addressing the perennial challenge of keeping them fully informed on the opportunities
and benefits arising from membership of our Association.

Work began on a new Customer Relationship Management system that will improve substantially our internal processes
and enable us to engage more effectively with every category of membership. Automating manual processes such as
membership renewals, events registration and the purchasing of products and services online will free up our valuable
but limited resources - allowing our dedicated membership team to engage more frequently and more meaningfully
with members.

Our industry is in a constant state of evolution and we need to anticipate change and evolve accordingly. In 2016 we
enhanced our position as one of the world’s three most important and influential world tourism organisations whilst
securing the Association’s future by implementing prudent and effective financial management.

This was only made possible with the support of the PATA Executive Board and our teams in Bangkok, Beijing,
Sydney and London. I pay tribute to them all for their dedication and I also thank our members and industry partners
for supporting PATA in 2016.

Let us work together to ensure a brighter, safer and more sustainable future for our industry.

5
 The Pacific Asia Travel Association (PATA) is a not-for-profit association that is
internationally acclaimed for acting as a catalyst for the responsible development of
travel and tourism to, from and within the Asia Pacific region.

The Association provides aligned advocacy, insightful research and innovative events
to its member organisations, comprising 95 government, state and city tourism bodies,
25 international airlines and airports, 108 hospitality organisations, 72 educational
institutions, and hundreds of travel industry companies in Asia Pacific and beyond.

Founded in Hawaii in 1951 the PATA headquarters has been located in Bangkok,
Thailand since 1998. PATA also has full time and representative offices in London,
Beijing and Sydney.

Thousands of travel professionals belong to the 38 local PATA chapters worldwide.

These chapters organise travel industry training and business development events

ABOUT
and their grassroots activism underpins PATA’s membership of the Global Travel
Association Coalition. This Coalition also embraces the Airports Council International,
Cruise Line International Association, International Air Transport Association,
International Civil Aviation Organisation, World Economic Forum (WEF), United
Nations World Tourism Organization and the World Travel & Tourism Council (WTTC).

6
HIGHLIGHTS OF

2016

7
 HIGHLIGHTS OF 2016
January:
PATA Task Force assesses
cruise options
PATA assembled a Task Force, at the
request of the Guam Visitors Bureau (GVB)
and the Micronesia Cruise Association
(MCA), to prepare a public policy case
and a financially viable business model
for the homeporting of a cruise line serving
Guam and the neighbouring islands of
Micronesia.
The recommendations from the Task
Force report would then be used as a
foundation to market the homeporting
concept as a regional opportunity for cruise
lines and operators seeking authentic and
unexplored destinations. The final report
outlined a recommended business model
reflecting the costs and economic details
pertinent to cruise lines, consumers and
other relevant stakeholders.
February:
Adventures in Chiang Rai
The PATA Adventure Travel and
Responsible Tourism Conference and
Mart 2016 (AT&RTCM 2016) was staged
in Thailand’s northern city of Chiang Rai,
attracting more than 200 buyers, sellers
and conference delegates.
With the theme ‘Creating Experiences,
Sharing Opportunities’ the event’s
supporter, the Tourism Authority of
Thailand (TAT), presented Chiang Rai
as an illustration of Thailand’s long-term
commitment to promoting the balanced
philosophy of tourism where the economic
benefits of tourism go hand-in-hand with
environmental and cultural preservation.
TAT Governor Yuthasak Supasorn said
that this three-day niche PATA event
brought together public and private sector
organisations involved in adventure travel
and responsible tourism ‘to discuss new
opportunities for promoting environmental
protection and social sustainability within
the industry’.
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March:
New PATA Face of the Future
Danny Ho, Executive Pastry Chef at Hotel
ICON in Hong Kong SAR, was named as
the PATA Face of the Future for 2016.
He received this prestigious award on
the basis of his clear commitment to the
responsible development of travel and
tourism in the Asia Pacific region as well
as his views on how travel and tourism
may contribute to the achievement of the
UN Sustainable Development Goals.
April:
Strengthening ties with the
China National Tourism
Administration
PATA CEO Dr. Mario Hardy visited Mr Li
Jinzao, Chairman of the China National
Tourism Administration, at the CNTA
headquarters in Beijing. This important
visit examined how PATA and CNTA
may work more effectively together on
areas of mutual interest by strengthening
communications and cooperation.
Chairman Li recognised that PATA is
a very influential international travel
organisation in China and the Asia Pacific
region. With China shifting its tourism
development mode from spot-based to
region-based tourism the CNTA is looking
to strengthen communications and
cooperation with PATA whilst continuing
to advance projects that are also related to
tourism for poverty alleviation and tourism
for diplomacy.
Chairman Li hoped that PATA would
make full use of its strength to promote
further regional tourism cooperation in
the Asia Pacific region and create a safer,
more convenient and more comfortable
environment for tourists.
May:
Exploring secrets of the Blue
Continent
The PATA Annual Summit in Guam.
USA welcomed 640 delegates from 206
organisations representing 33 countries.
With the ‘Exploring the Secrets of the Blue
Continent’ the four-day event, hosted by
the Guam Visitors Bureau (GVB), included
the Association’s executive and advisory
board meetings, Annual General Meeting,
PATA Youth Symposium and PATA
Marketplace.
The one-day conference that addressed
key issues affecting the Pacific region
included a keynote address from the
Hon. Alain St. Ange, Seychelles Minister
of Tourism and Culture. The GVB also
hosted a reception to mark PATA’s 65th
anniversary. A new PATA Executive Board
was elected under the Chairmanship of
Andrew Jones.
June:
Zimbabwe Tourism Authority
joins PATA
The Zimbabwe Tourism Authority
(ZTA) became the first national tourism
organisation from the continent of Africa to
join PATA. The two organisations signed a
Letter of Agreement during the Sanganai
World Tourism Expo in Bulawayo. The
Agreement reinforces Zimbabwe’s
determination to increase the numbers
of International Visitor Arrivals (IVAs)
from influential source markets across
the Asia Pacific region by utilising PATA’s
knowledge, network and resources.
HIGHLIGHTS OF 2016
July:
PATA Gold Awards winners
Winners of the 2106 PATA Grand and
Gold Awards were announced. The
awards, sponsored by the Macao
Government Tourism Office, recognised
the achievements of 26 separate
organisations and individuals. The awards
were to be presented during PATA Travel
Mart 2016 in September.
August:
More support for Young
Tourism Professionals
PATA announced that there would be
greater focus on the ‘Young Tourism
Professional’ in line with United Nations
General Assembly adoption of 2017 as
the ‘International Year of Sustainable
Tourism for Development’.
PATA pledged to further strengthen the
Association's commitment to young
tourism professionals throughout the
region in meetings between CEO Dr. Mario
Hardy, ASEAN Tourism Ministers and the
heads of National Tourism Organisations
throughout the region.
He stressed the importance of making
further substantial investments in
developing and enhancing the knowledge
and skills of students engaged in tourism,
hospitality management and related
degree courses.
Dr. Hardy also highlighted the essential
need to develop and implement effective
training platforms for YTPs as they seek to
enhance their skills and make meaningful
career progression.
September:
PATA Travel Mart delegates
experience Wonderful
Indonesia
The PATA Travel Mart 2016 in Banten
province, Indonesia - hosted by the
country’s Ministry of Tourism - attracted
1,358 delegates from 63 destinations.
PATA welcomed first-time sellers to PTM
from State of Palestine, the Republic of
Kazakhstan, the Russian Federation, and
Zimbabwe.
The PATA Global Insights Conference,
with the theme ‘Exploring Connectivity’,
returned to Auckland for more thought-
provoking keynote presentations and
panel discussions. The opening address
was given by Norman Thompson, Deputy
Chairman of Auckland Tourism, Events
and Economic Development (ATEED).
October:
CEO Challenge winners
announced
A province in Lao PDR and the city of
Meishan in China were announced as
the winners of the US$1 million PATA
CEO Challenge 2016. Southern Laos
received the Top Destination Award
in the category of ‘Regions/States/
Provinces’. The People’s Government
of Meishan, Sichuan, China received the
Top Destination Award in the category of
‘Second and Third Tier Cities’.
The prizes, valued at US$500,000 each,
were in the form of digital marketing
campaigns to be created by TripAdvisor
and designed to showcase the winning
destinations to global audiences.
The PATA CEO Challenge 2016 Top
Destinations awards were to be presented
at the PATA Aligned Advocacy Dinner
in London on November 7, 2016 in the
presence of Dr. Taleb Rifai, Secretary
General of the UNWTO.
November:
Designing a sustainable
tourism brand
The PATA New Tourism Frontiers Forum
2016 (NTFF2016) in Cox’s Bazar,
Bangladesh attracted 242 delegates
from 17 countries. The event, hosted by
the Bangladesh Tourism Board under
the supervision of the Ministry of Civil
Aviation and Tourism, attracted delegates
from the public and private sectors to
share inspiring and insightful discussions
on some of the major issues in marketing
and managing tourism growth for an
unexplored destination such as Cox’s
Bazar.
The conference theme was ‘Designing a
sustainable tourism brand – an integrative
approach to building a responsible coastal
destination’.
December:
Landmark agreement in the
South Pacific
PATA signed a landmark agreement with
the South Pacific Tourism Organisation
(SPTO) designed to enhance the
promotion and development of sustainable
tourism across a broad range of Pacific
island destinations. A core element of the
Memorandum of Understanding is tourism
associated data that embraces accurate
figures for international arrivals to each
SPTO member nation.
PATA granted the South Pacific Tourism
Organisation special access to the
Association’s online data platform
PATAmPower. In return, the SPTO is
committed to encouraging destinations to
provide all relevant statistical information
to enable PATA’s Strategic Intelligence
Centre to provide analysis of trends and
accurate, long-term forecasts.
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 ADVOCACY

10
 ADVOCACY

LISTENING TO YOUR VOICES

Advocacy is an essential role for every business association. PATA’s track record in representing members’ interests
across a broad range of industry issues is widely recognised and appreciated.

In 2016 PATA was an active member of the Global Travel Association Coalition (GTAC) that embraces the UNWTO,
IATA, WTTC and other leading global tourism-related associations and organisations. GTAC continued to speak with
one influential voice on issues and challenges facing the industry at large whilst promoting a better understanding of
the role of travel and tourism as a driver of economic progress, employment and sustainable development.

PATA continued to advocate the vital importance of encouraging ‘dispersal of tourists’. Many tourist destinations,
including sites of historic and cultural importance such as Angkor Wat in Siem Reap, are under pressure from ever-
increasing numbers of visitors. There is a pressing need to encourage tourists to venture further afield and discover
lesser known destinations.

However, good news emerged in a report published by PATA with support from Premier Partner Visa Inc. The report,
‘Stepping Out of the Crowd: Where the Next Generation of Young Asian Travellers is Heading and How to Win a Place
on Their Travel Itinerary’, indicated that Asian millennials were leading by example in seeking to explore more remote
attractions and hidden tourism gems.

The report examined the travel trends of young Asian consumers and highlighted how secondary destinations and
attractions may benefit from the rise in outbound travel from Asian source markets.

The research was timely – and welcomed by PATA stakeholders – as it was published at a time when many of the
world’s most popular cities were looking to relieve pressure on crowded attractions and to spread visitor across a
broader geographic landscape.

The report’s findings also showed that young people are motivated to leave the crowds in major cities in favour of
discovering the food, cultures and lifestyles of local people living in less popular destinations.

11
 The issue of overcrowding is not merely a challenge for city authorities. Small island states such as the Republic of
Palau (host of the 2017 PATA New Tourism Frontiers Forum) and the Maldives have experienced unprecedented surges
in international visitor arrivals in recent years and are now struggling to cater for crowds of new visitors, especially from
rapidly emerging outbound markets in Asia. PATA continued to promote the importance of the dispersal of tourists at
major events and conferences throughout 2016.

With many tourist ‘hot-spots’ now at breaking point the Association worked with members and partners to give greater
focus and importance to authentic local travel experiences in less crowded, yet equally compelling rural regions.

A prime example of PATA’s continuing commitment to this crucial subject was the PATA New Tourism Frontiers Forum
2016 (NTFF2016) in Cox’s Bazar, Bangladesh. Attracting 242 delegates from 17 countries the event, hosted by the
Bangladesh Tourism Board under the supervision of the Ministry of Civil Aviation and Tourism, united the public and
private sectors to share inspiring and insightful discussions on some of the major issues in marketing and managing
tourism growth for an unexplored destination.

PATA also continued to press for easier cross-border travel as a means of encouraging and promoting tourism to
provide real economic benefits for local communities. In praising the vision of the authorities in Indonesia for creating
a visa regime that encourages more international arrivals the Association remained mindful of the security issues and
very serious incidents taking place in many popular tourism cities and destinations that were prompting calls in some
quarters for tighter visa regimes and border controls.

PATA will continue to advocate the need to advance travel facilitation as a means of encouraging sustainable tourism
development and providing meaning socio-economic benefits to those in most need. However, the Association
recognises that safety and security is of paramount importance and that nations have a duty of care that will, inevitably,
influence ease of passage across borders.

In the words of UNWTO Secretary General Taleb Rifai ‘the current security challenges should not deter us from
advancing visa facilitation. Enhancing security and facilitating tourism travel should always go hand in hand. At a
moment when safety and security are top of the agenda for us all we need to work closer together to promote a safe,
secure and seamless travel environment by using the possibilities offered by technology and international cooperation
in data sharing’.

A number of meetings were held with tourism ministers, private sector members, chapter representatives and
non-members from the travel and tourism industry as a means of gaining further appreciation and understanding of the
challenges and the opportunities that destinations are now facing. Through these meetings PATA adapted its advocacy
agenda in line with the most pressing needs of its stakeholders.

The message is clear. PATA listens. PATA is your voice for reason and for change.

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EVENTS

13
 EVENTS

PLATFORMS FOR BUSINESS EXPANSION

In many spheres of travel and tourism, PATA is perhaps best known and recognised for its impressive portfolio of events.
The Association boasts an impressive track record in staging local, regional and international B2B events stretching
back seven decades to the inaugural Pacific Area Travel Conference in Honolulu in January 1952.

Since that date PATA has displayed remarkable aptitude not only in keeping pace with the changing demands of the
industry but also by setting new standards and leading by example in creating events that reflect the demands of
members, industry and government leaders, thought leaders and influencers.

In 2016 the Association’s mainstream PATA events, including the signature PATA Travel Mart, attracted nearly 3,000
delegates.

HIGHLIGHTS OF 2016

PATA Adventure Travel and Responsible Tourism Conference & Mart

Chiang Rai, Thailand
‘Creating Experiences, Sharing Opportunities’

Renowned international speakers shared their knowledge and insights on one of the region’s fastest growing tourism
sectors at this event, sponsored and supported by the Tourism Authority of Thailand. TAT Governor Yuthasak Supasorn
was full of praise for the Conference and Mart. “TAT recognises this niche event as an ideal platform to reiterate
Thailand’s long-term commitment to promoting responsible tourism, especially to the ‘who’s who’ of the industry.”

The event attracted nearly 300 delegates, including leading international travel executives, who promote adventure and
sustainable travel programmes. New for 2016 was the ‘Bloggers’ Lounge’ where delegates and exhibitors mixed freely
with qualified travel bloggers pre-screened by the Professional Travel Bloggers Association (PBTA). The attendance
of travel bloggers provided an added dimension and the hashtag ‘ATRTCM2016’ generated nearly one million social
media impressions during the three-day event.

14
 PATA Annual Summit (PAS)
Guam, USA
‘Exploring the secrets of the Blue Continent’

The PATA Annual Summit, on the island of Guam (USA) in the Western Pacific, set out to explore the secrets of the
Blue Continent in the company of 640 delegates from 206 organisations based in 33 countries.

The programme for PAS 2016, hosted generously by the Guam Visitors Bureau (GVB), included the Association’s
executive and advisory board meetings, Annual General Meeting, PATA Youth Symposium, PATA Marketplace and the
one-day conference that addressed some of the key issues affecting the Pacific region.

The summit began with over 150 students, alumni, lecturers and industry professionals from Guam, overseas and
neighbouring Pacific Islands participating at the PATA Youth Symposium 2016, held at the University of Guam Calvo
Field House. The conference on May 19, with the banner Code B.L.U.E, explored the key challenges affecting the
region: B = Back to Basics (marketing); L = Leveraging our knowledge and expertise (trends and insights); U =
Unravelling the mysteries of Human Capital Development (human resources); and E = Energising our eco efforts
(sustainability).

“We understand that the Pacific Islands are at a critical junction in its future development economically, socially
and environmentally, especially with the growing effects of climate change. It was encouraging to see so many
delegates remaining on the island of Guam to join the artists and cultural practitioners from 27 Pacific nations
at the 12th Festival of the Pacific Arts,” – PATA CEO Dr. Mario Hardy.

The conference was opened by the Hon. Eddie Baza Calvo, Governor of Guam, followed by welcome remarks from Jon
Nathan Denight – Executive Director of the Guam Visitors Bureau (GVB) and from GVB Chairman Mark Baldyga who
outlined the island’s ‘Tourism 2020’ strategic plan. The PATA official welcome was given by Chairman Kevin Murphy.

The opening keynote address, from Seychelles Tourism and Culture Minister Alain St. Ange, was titled ‘The Big BLUE:
In Danger – Yet Awe Inspiring’.

The closing address, on ‘Less space, more popularity - finding the balance’, was given by Tony de Brum, Ambassador
Extraordinary and Plenipotentiary for Climate Change from the Republic of the Marshall Islands.

15
 Celebrating 65 amazing years

PATA celebrated its 65th anniversary on the island of Guam and this landmark was recognised during the
Welcome Fiesta on May 19 with a commemorative plaque presented jointly by the Guam Visitors Bureau, the
Guam International Airport Authority and the PATA Micronesia Chapter.

PATA MarketPlace

Delegates attending PAS 2016 gained valuable insights about the latest travel and tourism industry trends during
the PATA Marketplace with presentations from Akiko Yoshida, Executive Vice President - Japan National Tourism
Organization; Sarah Mathews, Head of Destination Marketing APAC - TripAdvisor, and Ronan Carey, COO - Red
Robot Limited.

The initial findings of the PATA Task Force report on mapping the potential of sustainable-small ship cruising in
Micronesia were presented by Oliver Martin and Greg Klassen, Partners at Twenty31 Consulting.

16
 PATA joins hands with UNWTO

The PATA/UNWTO Ministerial Debate on ‘Pacific Island Tourism’, moderated by BBC World News Presenter Sharanjit
Leyl, firstly gave industry leaders from the public and private sectors a platform to discuss how to better align their
actions towards a common set of goals. The second session, ‘Cloud nine – the ideal island economy’, looked at the
key factors that shape and influence the ideal economy for a Pacific island nation.

The event was opened officially by renowned Marshall Islands poet Kathy Jetnil-Kijiner. The debates featured Alain
St. Ange (Minister of Tourism & Culture, Seychelles); Jon Nathan Denight (Executive Director, Guam Visitors Bureau),
Derek Toh (Founder & CEO, WOBB); Akiko Yoshida (Executive Vice President, Japan National Tourism Organization),
Tony de Brum (Ambassador Extraordinary and Plenipotentiary for Climate Change from the Republic of the Marshall
Islands), Mark Schwab (CEO, Star Alliance) and Andrew Dixon (Andrew Dixon (Owner of the Nikoi and Cempedak
Islands, Indonesia) as well as Faustina Rehuher-Marugg (President - Palau Resource Institute); Gerald Lawless
(Chairman - World Travel & Tourism Council) and Tuifa’asisina Misa Lisati Aiolupotea (Associate Minister for Public
Enterprises, Commerce, Industry and Labour at the Samoa Tourism Authority).

Other highlights of the four-day event included the presentation of the annual PATA Awards, the election of the new
PATA Executive Board including Chairman Andrew Jones, a PATA Chapter Colloquium, and the PATA Foundation
annual charity gala dinner.

Many delegates remained in Guam to enjoy an impressive mix of artistic and cultural shows from 27 Pacific island
nations and territories as part of FESTPAC, the 12th Festival of Pacific Arts.

PATA Travel Mart, Banten province, Indonesia

PTM returns to Indonesia

PATA Travel Mart 2016 (PTM2016) returned to Indonesia for the first time since 2007 (Bali). The Association’s
signature event, widely regarded as the region’s most effective and successful travel mart, was staged at the Indonesia
Convention Exhibition (ICE) in BSD-Serpong and was hosted generously by the Ministry of Tourism, Republic of
Indonesia. The official Welcome Reception was graciously presided over by Dr. Jusuf Kalla, Vice President of the
Republic of Indonesia.

PTM 2016 attracted 1,358 delegates from 63 countries and territories, with 683 sellers from 272 organisations and 36
destinations along with 258 buyers from 247 organisations in 52 source markets. The Mart welcomed, for the first time,
sellers from the State of Palestine, the Republic of Kazakhstan, the Russian Federation and Zimbabwe.

17
 The ribbon-cutting ceremony on September 8 was conducted by Dr. Arief Yahya, Minister of Tourism, Republic
of Indonesia in the company of Setyono Djuandi Darmono (Chairman, PATA Indonesia Chapter); Andrew Jones
(Chairman, PATA); Mr I Gde Pitana (Indonesia Deputy Minister for International Tourism Marketing), and Dr. Mario
Hardy (CEO, PATA). Dr. Hardy used the opportunity during the morning media briefing session to thank President
University for hosting

The PATA Youth Symposium was also held on September 8 at President University with the theme ‘Young Entrepreneurs
Role in Tourism’s Future’. The Symposium was attended by nearly 200 young tourism professionals.

Each year the PATA Travel Mart offers much more than merely providing a platform for contracting business. PTM 2016
in Banten province was no exception. The first business day featured the PATA Travel Innovation Forum in partnership
with Phocuswright and Connecting Travel, and the Blogger Marketing Forum.

Opening the PATA Travel Innovation Forum was Chetan Kapoor, Research Analyst - APAC, at Phocuswright, India.
This was followed by the first of three Executive Roundtable discussions featuring flag bearers of online travel, namely
Hans Ebenhahn (Founder and CEO, Nusatrip, Indonesia); Ryan Kartawidjaja (Deputy CEO, Pegipegi.com, Indonesia);
Caesar Indra (Head of Product, Traveloka, Indonesia) and Gaery Undarsa (Co-founder and Managing Director, Tiket.
com, Indonesia). Chetan Kapoor was the moderator.

The second Executive Roundtable covered the subject of Innovation with guest speakers highlighting emerging digital
travel trends. Sitting at this Roundtable were Gaurav Chiripal, (Founder and CEO - QuadLabs Technologies Pvt. Ltd,
India); Ha Lam (Co-Founder - Triip.me, Singapore); Terence Mak (CEO - Where is Where, Singapore); Moritz Mayrhofer
(Head of Distribution - BeMyGuest, Singapore) and Satish Singh (Founder and CEO, TTW Holdings Limited, UAE).

PATA Regional Director – Europe Daniela Wagner conducted the one-to-one Executive Interview with Shinta Witoyo
Dhanuwardoyo (Founder - Bubu.com, Indonesia) before the final Executive Roundtable addressed industry ‘Hot Topics’
with views from Angeline Tang (Director Sales & Marketing, Asia - Avis, Singapore); Paul Millan (Regional Director –
APAC, Traveltek, Australia); Sarah Mathews (Head of Destination Marketing APAC - TripAdvisor, Hong Kong); Noel
Swain (COO - eZeego1, India), and Stewart Hunter (Director of Sales APAC - Sojern, Singapore).

The Blogger Marketing Forum was led by Matt Gibson, President of the Professional Travel Bloggers Association, with
a presentation on ‘How to start working with influencers to drive sales tomorrow’. The Forum then featured a series of
case studies on successful influencer campaigns. Moderator Natasha Martin led the discussion with Matt Gibson and
fellow travel bloggers Nicole Smith, Juno Kim and Raphael Alexander Zoren.

Delegates chose between two complimentary half-day city tours that visited Taman Mini Indonesia Indah and the
‘Beautiful Indonesia Miniature Park’.

18
 PATA Global Insights Conference, Auckland, New Zealand
‘Exploring Connectivity’

The PATA Global Insights Conference returned to Auckland on September 30 for more thought-provoking keynote
presentations and panel discussions. The conference looked in detail at ‘Exploring Connectivity’ – a vital component
for any destination seeking to extend its reach to influential international source markets. The official welcome was
given by Sir Pita Russell Sharples, former Minister of Maori Affairs and a Strategic Advisor to the Board of the Auckland
Tourism, Events and Economic Development (ATEED) – the main conference sponsor. Norman Thompson, former
deputy CEO of Air New Zealand, former Chairman of the Tourism Industry Association of New Zealand and the Deputy
Chairman of ATEED, gave the opening address.

More than 150 delegates from public and private sector organisations throughout New Zealand attended the conference
to hear keynote presentations from Ian Lorigan (IATA); John Grant (JG Aviation Consultants); Simon Elsegood
(Centre for Aviation); Carolyn Childs (MyTravelResearch.com); Dr. Peter Cock (Newcastle Airport, Australia); Marl
Ferszt (Bartercard); Russell Young (Sojern); Alistair McEwan (BBC Worldwide Asia); Stuart Stacy (ADARA); Julian
Persaud (Airbnb); John O’Mahony (Deloitte Access Economics), and Catherine Turnbull (Grès et Delibaşı). The panel
discussions were moderated once again by Ben Thompson, the UK-based business anchor and presenter with PATA’s
Premier Media Partner BBC World News. Closing remarks were given by Chris Roberts, CEO of Tourism Industry
Aotearoa. The conference was sponsored generously by Auckland Tourism, Events and Economic Development
(ATEED) with additional support from SKYCITY Entertainment, BBC World News, Sojern and Tourism Holdings Limited.

Profile of delegates attending PGIC 2016

PATA Regional Director – Pacific Chris Flynn reflected on another successful conference in Auckland. “PGIC
2015 was heralded by many industry luminaries as the most eye-opening of its kind to be held in New Zealand.
The 2016 conference programme was designed to be even more beneficial to the industry because it took
insights to a higher, yet more practical, level.”

19
 PATA New Tourism Frontiers Forum, Cox’s Bazar, Bangladesh
‘Designing a sustainable tourism brand’

The PATA events calendar for 2016 concluded in Cox’s Bazar, home to the world’s longest unbroken beach, where
242 delegates from 17 countries converged for a two-day event that looked in detail at how to adopt an integrative
approach to building and maintaining a responsible coastal destination. Hosted generously by the Bangladesh Tourism
Board, this PATA New Tourism Frontiers Forum was also designed to examine how best to manage tourism growth
whilst delivering real, effective and tangible benefits to the local community.

The programme began on November 24 with a Technical Tour and Tourism Marketing Treasure Hunt that challenged
delegates to discover the hidden tourism ‘gems’ of Cox’s Bazar. This field activity was also an important forerunner
to the ‘Brand building and marketing of emerging destinations’ conference session on day two.On November 25 the
conference opening address was delivered by Mr S M Ghukam Farooque, Secretary – Ministry of Civil Aviation and
Tourism, followed by a special address from Xu Jing (UNWTO Regional Director for Asia and the Pacific). Delegates
also heard special remarks from Rashed Khan Menon, Bangladesh’s Minister for Civil Aviation and Tourism.

The keynote address was given by Yasmin Choudhury, founder of Lovedesh – London-based global enterprise that
is devoted to travel, food and design in Third World countries. The conference programme featured five separate
sessions including ‘Building a sustainable tourism destination with living heritage communities’ - a panel discussion
moderated by Jharna Joshi from the Alliance for Ecotourism in Nepal. The panel comprised Prof. Dr. Shaker Ahmed
(Chairman of Tourism and Hospitality Department, Dhaka University); Mya Mya Nue (Himalica Pilot Project, Bandarban
Hill, Bangladesh) and Peter Richards (Consultant on Cultural Tourism Development – United Nations).

UNWTO/PATA Forum on Tourism Trends and Outlook

The 10th UNWTO/PATA Forum on Tourism Trends and Outlook was held in Guilin, China in October 2016
with the theme ‘Tourism 10:10 - Looking back to look forward’. This high-level Guilin Forum provided an
important platform for policy makers, researchers and other industry representatives to keep track of regional
and global trends.

PATA Directors and Board members also supported several other high-profile travel and tourism conferences in China
through 2016 including the First World Conference on Tourism for Development organised by the Government of the
People’s Republic of China and the World Tourism Organization (UNWTO) in Beijing; the International Mayor’s Forum
on Tourism in Zhengzhou, Henan; the International Mountain Tourism Conference in XingYi, Guizhou; the 7th Sichuan
International Road Trip Expo & 14th Guangwu Mountain Red Leaves Festival in Bazhong, Sichuan; the Silk Road
International Tourism Festival in Lanzhou, Gansu; the World Tourism Cities Federation Fragrant Hills Tourism Summit
in Chongqing; the Emei Global Summit and Asia Pacific Tour Operators Conference in Leshan, Sichuan, and the 7th
Sichuan Rural Culture Tourism Festival and Happy Sunshine Festival in Panzhihua, Sichuan.

20
MEMBERSHIP

21
 MEMBERSHIP

BUILDING FOR A SECURE FUTURE

PATA extended still further its operational footprint in 2016 whilst consolidating membership categories to aid recruitment
and retention in an increasingly challenging and competitive environment.

PATA’s contributions across the broad spectrum of the travel and tourism community, helped the Association to attract
170 new members with its reach expanding to embrace new government members in the Middle East (Abu Dhabi and
Ras Al Khaimah) and on the continent of Africa (Western Cape and Zimbabwe).

The Association’s footprint now spans 95 destinations/territories across 12 time zones

STREAMLINING
A major priority in 2016 was to rationalise and to streamline the Association’s many categories of membership. Each
member was positioned in a category that was appropriate and relevant to its core business. Benefits and annual
fees were aligned accordingly. The end result of the review reduced the total number of membership categories from
46 to 21.

One new sub-category - Young Tourism Professional - was established (taking effect from January 1st, 2017) as part
of the Association’s commitment to helping and encouraging ‘tomorrow’s tourism leaders’. The role of Young Tourism
Professional Ambassador was also created to drive this commitment. Life membership was not part of this consolidation
process. A revised structure was submitted to, and approved by, the Executive Board during the 2016 PATA Annual
Summit on the US island territory of Guam.

In 2016 the Association’s membership team pursued once again the strategy to target more Industry category members
as well as engaging more consistently and effectively with National Tourism Organisations and other members sitting
in the influential Government category.

Year-end results, in terms of numbers of new recruits, were broadly in line with those for 2015 with a slight improvement
in revenue generated. As at 31st December 2016 the total number of members was 845.

Looking ahead to 2017 the Association’s new Customer Relationship Management system, when fully operational, will
provide a fit-for-purpose platform that enables more effective engagement with all PATA members.

22
 New government members in 2016
PATA welcomed new government members from Abu Dhabi, Zimbabwe and South Africa in 2016. In March,
the Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi) joined the Association with a mission is to
promote the heritage, culture and traditions of the emirate throughout the PATA region. “The Asia Pacific
region is an important source market for many destinations. As our newest government member, Abu
Dhabi now has the ability to tap into our expertise, research and networks to assist in the development of
responsible tourism for what is undoubtedly a fascinating destination,” said PATA CEO Dr. Mario Hardy.

In June the Zimbabwe Tourism Authority (ZTA) became the first national tourism organisation from the
continent of Africa to join PATA with the two organisations signing a Letter of Agreement during the Sanganai
World Tourism Expo in Bulawayo. The Agreement reinforced Zimbabwe’s determination to increase the
numbers of International Visitor Arrivals (IVAs) from influential source markets across the Asia Pacific
region. ZTA Chief Executive Officer Karikoga Kaseke said, “Gone are the days when just being a tourist
destination was a selling point on its own. Now, with the growth of the digital world, destinations must be
more innovative to get the much-needed attention from tourists in the face of growing competition. We have
no doubt that the journey that we are embarking upon with PATA will go a long way to penetrating the huge
Asia Pacific market.”

In November 2016 PATA welcomed Wesgro, the official Tourism, Trade & Investment Promotion Agency for
Cape Town and the Western Cape. The announcement was made by PATA CEO Dr. Mario Hardy during the
Association’s annual Aligned Advocacy Dinner in London as part of World Travel Market on November 7.

Wesgro CEO Tim Harris said, “The Asian market is extremely important and valuable for Cape Town and
the Western Cape’s tourism, trade and investment strategy. PATA provides an excellent platform for us to
directly engage key stakeholders in this market, learn from them and make Cape Town and the Western
Cape a more attractive and accessible destination.”

23
 HUMAN CAPITAL
DEVELOPMENT

24
 HUMAN CAPITAL DEVELOPMENT

CONTINUED COMMITMENT TO OUR MOST IMPORTANT ASSET

PATA’s commitment to the development of tourism industry professionals was further strengthened in 2016 with two
well attended and highly successful workshops in Bangkok as part of the PATAcademy-HCD programme.

This bi-annual series of three-day workshops, launched in 2013, embraces intensive classroom interactions with travel
industry practitioners with practical activities, group assignments, and networking events.

In June, 20 delegates convened in the PATA Engagement Hub in Bangkok for a fascinating three-day programme
addressing the topic ‘100 million-plus Chinese outbound travellers – learn how to increase your market share’.

With tourists from China identified as the world’s biggest travel spenders - making more than 100 million outbound
journeys in 2015 - an impressive roster of guest speakers and presenters helped the delegates to gain an in-depth
understanding of Chinese traveller trends and how to raise their share of voice in an increasingly crowded market place.

The programme covered the strategic marketing and communications strategies required to secure increased market
share in this highly lucrative segment. The important and sometimes sensitive issues of language and cultural barriers
were also addressed. For the site visit, participants explored Talat Noi - one of the oldest Chinese communities in
Bangkok’s famous Chinatown district.

In December the PATAcademy-HCD theme turned to the art of storytelling with an interest and diverse programme
featuring acclaimed international communicators. The programme empowered the 25 delegates with the knowledge
and expertise to develop and share compelling narratives of their brands and products.

“For centuries humans have told stories of their past, present and future. Cultures have long used storytelling
to pass on knowledge and content as stories are passed from generation to generation. Storytelling is one
of the most universal ways of communicating, bringing life to data and facts,” - PATA CEO Dr. Mario Hardy.

The delegates also experienced at first hand the vibrant Nang Loeng neighbourhood in Bangkok, home to Thailand’s
first wooden movie theatre and one of the last strongholds of the performance arts that flourished in the years following
the Second World War.

25
 PATA CEO CHALLENGE
REWARDING AUTHENTIC CULTURAL DIVERSITY

A province in Lao PDR and the city of Meishan in China were the winners of the US$1 million PATA CEO Challenge
2016. The province of Southern Laos received the Top Destination Award in the category of ‘Regions/States/Provinces’.
The People’s Government of Meishan, Sichuan, China was granted the Top Destination Award in the category of
‘Second and Third Tier Cities’. The two winning submissions were assessed by the judges to have the most authentic,
culturally diverse and innovative offerings.

The PATA CEO Challenge 2016, which attracted entries from a broad range of destinations, embraced the uniqueness
and diversity of heritages, cultures, customs and natural beauty of many destinations. It aimed to promote and enhance
the number of visitors to emerging destinations (regions, states and provinces, and second tier/third tier towns and
cities), and to enhance tourism development in a sustainable manner.

Southern Laos and Meishan city each received a prize valued at US$500,000 in the form of a digital marketing
campaign created by PATA CEO Challenge 2016 partner TripAdvisor. The awards were presented in London at the
annual PATA Aligned Advocacy Dinner in November 2016 as part of the Association’s busy programme of activities
linked to World Travel Market.

“We received some excellent submissions this year and it was extremely difficult to choose a winner from each
category. Each entry was assessed objectively and independently and the final choices were decided upon
by a very small margin,” said PATA CEO Dr. Mario Hardy.

A dedicated team at TripAdvisor has been working with the winners on creating marketing campaigns that will take
maximum advantage of the digital environment to encourage travellers to visit their respective destinations. The winners
are also now benefiting from TripAdvisor’s wealth of knowledge, experience and proven global digital penetration. The
company is supporting the winners by helping their respective local hospitality businesses to gain listings on TripAdvisor.

Sarah Matthews, TripAdvisor’s Head of Destination Marketing for Asia Pacific said, “We were very impressed
with the submissions from Southern Laos and the city of Meishan – they showed how involved their communities
are in all that they do for tourism. We look forward to working with them to showcase these two incredible
destinations to global travellers who want to discover new and amazing places.”

The two winners also received complimentary passes to attend the PATA Annual Summit 2017 in Negombo, Sri Lanka
and PATA Travel Mart 2017 in Macao SAR.

26
PATA GOLD AWARDS
MORE GLITTERING SUCCESS STORIES

The PATA Gold Awards recognise each year the achievements of individuals and organisations that make outstanding
contributions towards the successful promotion of the travel industry in the Asia Pacific region.

In 2016, four Grand Awards and 29 Gold Awards were presented to winners in categories covering Marketing campaigns,
Environment, Corporate Social Responsibility, Heritage & Culture, Education & Training, Marketing media, and Travel
journalism. The awards presentation took place during PATA Travel Mart in Banten province, Jakarta, Indonesia (see
below for details of the winners)

Maria Helena de Senna Fernandes, Director of the Macao Government Tourism Office (MGTO), said,
“I encourage individuals and organisations to join the PATA Gold Awards and take advantage of this prime
opportunity for tourism industry stakeholders to come together and share outstanding achievements. Your good
examples can be powerful tools to open new perspectives and ignite change towards our common aspiration
of creating a responsible and sustainable tourism industry in the Asia Pacific region.”

For more than 20 years the PATA Gold Awards have recognised so many amazing achievements across a very broad
spectrum of travel and tourism activities. These awards have only been possible each year because of the generous
sponsorship support provided by the Macao Government Tourism Office.”

Winners’ privileges:
• Gaining a major boost to an organisation’s marketing and public relations profile
• Attract valuable media coverage in various PATA communications channels including the weekly PATA Voice
e-newsletter, press releases and social media channels
• Entitled to leverage the prestigious PATA Gold Awards Winner logo on their collaterals
• Highlights of the winning entries on display at the PATA Travel Mart for delegates to enjoy
• Featured in the winners' showcase booklet and PATA Gold Awards video

Judged by panels of experts, the Gold Awards in 2016 recognised exceptional achievement in seven broad categories
with 29 Gold Awards and four Grand Awards on offer:

1. Marketing Campaign (eight Gold Awards and one Grand Award)

2. Environment (three Gold Awards and one Grand Award)
3. Corporate Social Responsibility (one Gold Award)
4. Heritage & Culture (two Gold Awards and one Grand Award)
5. Education & Training (one Gold Award and one Grand Award)
6. Marketing Media (ten Gold Awards)
7. Travel Journalism (four Gold Awards)

27
 PATA GRAND AWARDS

Education and Training

A Journey of Hope and Progress – The Jetwing Youth Development Project
Jetwing Hotels, Sri Lanka

Environment
Sands ECO360°
Marina Bay Sands, Singapore

Heritage and Culture

One and Only Project in Discover Thainess Campaign
Tourism Authority of Thailand

Marketing
Hong Kong New Year Countdown Celebrations Campaign
Hong Kong Tourism Board

PATA GOLD AWARDS 2016

Marketing – Primary Government CSR

Destination EXO Travel CSR Programme
Total Solar Eclipse Indonesia EXO Travel, Thailand
Ministry of Tourism Republic of Indonesia

Education and Training

Marketing – Secondary Government Introducing young TEC – New Zealand training
Destination future tourism leaders
NSW South Coast Campaign Tourism Export Council New Zealand
Destination NSW, Australia

Environment – Corporate
Marketing – Carrier Environmental Programme
Match.com Brand Partnership The TreadRight Foundation’s Wild Coverage
Fiji Airways, USA across Planet
The Travel Corporation

Marketing – Hotel
Ways to wow Environment – Ecotourism Project
Hotel ICON, Hong Kong SAR Low Carbon Holiday Initiative Project
DASTA, Thailand

Marketing – Industry
Thailand Boutique Awards Environment – Educational
Krungthai Card Public Company Limited, Programme
Thailand Eco Walk the Frangipani Langkawi Resort
and Spa
The Frangipani Langkawi Resort and Spa,
Marketing – Youth Travel Malaysia
Universal Studios Singapore’s Halloween
Horror Nights 5
Resort World Sentosa, Singapore

28
 PATA GOLD AWARDS 2016
Heritage and Culture – Heritage
Stone Houses, the heritage of Matsu Islands
Tourism Bureau, Chinese Taipei
Heritage and Culture – Culture
Lalare Orchestra
Ministry of Tourism Republic of Indonesia
Marketing Media – Consumer
Travel Brochure
Perfect Moments – Luxury Travel by SOTC
SOTC Travel Services Pvt. Ltd., India
Marketing Media – Mobile
Travel Application
Step Out, Macao Mobile App
Macao Government Tourism Office, Macao
SAR
Marketing Media – Promotional
Travel Video
Visit Nepal after the Earthquake
Adventure Travel Trade Association, USA
Marketing Media – Public
Relations Campaign
Papua New Guinea’s Past, Present,
Future Photo Exhibit Event
Tourism Papua New Guinea, USA
Marketing Media – E-Newsletter
Kerala Tourism E-Newsletter
Kerala Tourism, India
Marketing Media – Travel
Advertisement Broadcast Media
Visit Kerala
Kerala Tourism, India
Marketing Media – Travel
Advertisement Print Media
2016 Calendar: K-Food
Korea Tourism Organization, Korea (ROK)
Marketing Media – Travel Poster
Landmark of Malaysia
Tourism Malaysia
Marketing Media – Website
Mekong Tourism.org Digital Platform
Mekong Tourism Coordinating Office (MTCO),
Thailand
Marketing Media – Social Media
Discover Hong Kong Facebook Fan Page
Hong Kong Tourism Board
Travel Journalism – Destination
Article
Da Nang Breathing Fire by Roderick Eime
Vacation & Travel, October/November 2015,
Australia
Travel Journalism – Industry
Business Article
The New Glamorous, TTG Asia Luxury
December 2015 by Mimi Hudoyo and Raini
Hamdi
TTG Asia Media PTE LTD, Singapore
Travel Journalism – Travel Guide
Book
Thailand from the Air
Tourism Authority of Thailand
Travel Journalism – Travel
Photograph
Journey of the Wanderer by Handi Lakonso
Colours, Inflight magazine of Garuda
Indonesia, April 2015
Agency Fish, Indonesia
Honourable Mention
PATA Gold Award 2016 – Marketing
The RoadTrip: Asia 2015
Contiki Holidays, United Kingdom
29
 PATA FACE OF THE FUTURE
Executive Pastry Chef Danny Ho was named
as PATA Face of the Future for 2016. A native of
Malaysia, Danny received the award in his capacity
as Executive Pastry Chef at Hotel ICON in Hong
Kong SAR which also acts as an extension of The
Hong Kong Polytechnic University’s School of Hotel
and Tourism Management (SHTM).

Danny received a complimentary flight and hotel

accommodation to attend the PATA Annual Summit
2016 in Guam, USA when he addressed conference
delegates about the importance of Human Capital
Development. As with all winners of this prestigious
award, Danny was invited to attend meetings of the
PATA Executive Board as a non-voting member and
observer.

Danny Ho said, “This award is recognition for the amazing Hotel ICON team that has worked tirelessly to build
up the reputation of the School of Hotel and Tourism Management of The Hong Kong Polytechnic University.
Hotel ICON is an important facility in training the next generation of hoteliers. This PATA award validates our
vision to create a commercially viable and industry-leading hotel that is admired by hospitality experts around
the world.”

30
 STRATEGIC
INTELLIGENCE
CENTRE

31
 STRATEGIC INTELLIGENCE CENTRE

PROVIDING AUTHORITATIVE RESEARCH AND DATA

Accurate forecasting and reliable analysis sits at the heart of 21st century travel industry planning whilst access to
real-time data provides the information necessary to remain flexible, effective and, where necessary, profitable in
today’s digital market place.

The PATA Strategic Intelligence Centre (SIC) continues to provide informative research and data on issues and trends
shaping the travel and tourism industry in Asia Pacific and beyond. Each year the SIC produces, in partnerships with
external consultants and analysts, an impressive suite of statistical research-based reports and analytical publications
for use by tourism industry planners, sales and marketing executives and other key players seeking to shape the future
of their respective public and private sector organisations.

In 2016 the SIC issued a number of flagship publications including the PATA Asia Pacific Visitor Forecasts 2016 – 2020.
The report states that arrivals from China to Asia Pacific destinations would climb from an estimated 102 million in
2015 to more than 150 million by 2020.

The report added that this major source market would dominate the region’s international tourism landscape, generating
close to 23 percent of all arrivals to Asia Pacific destinations by the close of this decade. Based on historic expenditure
patterns this would increase the in-country aggregate expenditure in Asia Pacific by Chinese travellers from the US$157
billion achieved in 2015 to more than US$230 billion by 2020.

This report, widely respected throughout the industry, looks each year in detail into the expected flows and patterns
of international travellers across the Asia Pacific region over the following five years. As well as showing the expected
changes in the origin-destination pairs this authoritative PATA report also looks at the associated changes in tourism-
related revenue as well as the destinations favoured by key Asia Pacific source markets.

The report is published with the support of the Hong Kong Polytechnic University (HKPU) as part of a partnership
designed to further refine and develop the forecasts to improve accuracy and reliability.

It is important to note that these PATA forecasts relate to visitor arrivals as opposed to tourists (overnight visitors).
This is done to consider the many near-border flows across the region that have a significant economic impact. Some
Asia Pacific destinations are excluded because of limitations on data or late submission of information to the SIC.
However, destinations covered by these forecasts account for about 98 percent of the total inbound foreign arrivals
into Asia Pacific destinations.

PATA has a deserved reputation for producing accurate forecasts over a five year period and recent comparisons
against actual arrival indicate a difference of just one per cent. This demonstrates clearly the robustness and integrity
of each report.

In 2016 the SIC also issued a number of other flagship publications including Annual Tourism Monitor 2016 (Early
and Final Editions); Quarter Tourism Monitor; Issues & Trends (two volumes); 2 x UNWTO/PATA Tourism Updates
and 10 editions of the Connected Visitor Economy that featured a broad range of industry subjects scripted by PATA
members and partners.

Featured publications available free of charge to all PATA members were ‘How Travel & Tourism Benefits From Peace
- A Statistical Analysis of the Asian Experience’ and ‘titled ‘Stepping Out of the Crowd: Where the Next Generation
of Young Asian Travellers is Heading and How to Win a Place on Their Travel Itinerary’. The report, supported by
PATA Premier Partner Visa Inc., examined the travel trends of young Asian consumers and explained how secondary
destinations and attractions may benefit from the rise in outbound travel from Asian source markets.

PATA also issued a number of third party publications including the Spring and Autumn COTRI China Outbound Tourism
Research Institute Market Reports.

32
PATAmPOWER

PATAmPOWER is the essential one-stop-shop for data about the Asia Pacific visitor economy, improving productivity,
providing faster insights and enabling smarter decisions. With long-term partnerships with the national tourist offices,
the national statistical agencies, strategic partners and leading tourism research consultancies, PATA has access
to the latest comprehensive and insightful tourism data and makes such data available for members to access on
smartphones, tablets and computers via the interactive PATAmPOWER – anywhere in the world.

33
 PATA FOUNDATION

34
 PATA FOUNDATION

SAFEGUARDING OUR TOURISM HERITAGE

The PATA Foundation is a natural extension of PATA’s dedication to the principles of conservation – an integral part
of the Association’s Charter. When the concept of a charitable foundation was first proposed at the 33rd PATA Annual
Conference in 1984, there was unanimous member approval.

The mission remains ‘to contribute to the sustainable and responsible development of travel and tourism in Asia Pacific
through the protection of the environment, the conservation of heritage and support for education’.

Travel and tourism is vital to the Asia Pacific economy. Many countries depend upon the industry’s stability and growth
for jobs and wealth creation. The future looks bright … in the short-term. But travel and tourism continues to struggle
with the challenges arising from its own success. Tourism development in response to short-term increases in demand
puts pressure on environments, heritage sites, cultures and communities. These are the very assets that create the
demand. But they need protection.

Many people in both the public and private sectors of the industry appreciate that if a building, species or tradition
disappears then it is gone forever. They also understand that a polluted beach or an overcrowded temple diminishes
the travel experience.

The challenge for the industry is to strike a balance between short-term gain and long-term viability. If it can rise to the
challenge, Asia Pacific travel and tourism has a very bright long-term future.

Since its inception, PATA has been a champion of environmental and cultural heritage preservation as it relates to
travel and tourism development. PATA recognises the importance of the environment, cultural heritage and education
on the long-term viability of destinations.

In 2016 the PATA Foundation supported several deserving projects throughout the region.

35
 PROJECTS FUNDED IN 2016

1. Community Tourism Partnership Projects, Ta Phin and Lao Chai (Vietnam)

The PATA Foundation has supported a Community Tourism Training Project in the remote communities of Taphin and
Lao Chai near Sapa in Northern Vietnam since 2009. In 2016, additional funding from the Foundation allowed the
project to continue its work in Lao Chai with focus upon an exit strategy underpinned by a programme of activities
designed to foster critical partnerships between the community and tour operators.

Important continued on the development of a tourism network centred upon Lao Chai village. Fifteen new homestays
were in various stages of development in Lao Chai. Indeed, Lao Chai’s capacity to welcome visitors and build business
partnerships continues to develop. The small tourism business entrepreneurs emerging from the village continued
to demonstrate their knowledge of tourism and product development, eager to show their culture and community to
visitors.

2. Preservation of Bangladesh’s cultural heritage

Pally Baul Samaj Unnayan Sangstha (PBSUS) is a cultural non-profit
organisation participating in various social development issues. It utilises the
creative talents of Folk and Baul artists by organising musical programmes
to highlight social issues. With 60 percent of the Bangladeshi people living
in rural areas, where folk and mystical music is very popular, it is easy and
effective to raise awareness of such issues through traditional arts.

UNESCO has enshrined Bangladesh’s ‘Baul’ songs in its Representative

List of the Intangible Cultural Heritage of Humanity. The immediate aims
of the project are to collect and preserve Baul songs from the haor belt of
the country. These songs are then published for a much wider audience.

Baul singers are taught about the need to preserve this rich tradition,
making this music more popular amongst the younger generation in
particular through stage performances. It is anticipated that this project
will assist in promoting the Bangladesh Haor folk culture to a broader
international audience.

3. Skills training in Siem Reap (Cambodia)

Sala Baï is aligned with the PATA

Foundation’s mission to contribute
to the sustainable and responsible
development of travel and tourism
in Cambodia by supporting the
education and employment of
underprivileged people in Siem
Reap. The school continues to
deliver well-trained students to the
Cambodian tourism industry.

The PATA Foundation awarded a grant to the Sala Baï Hotel and Restaurant School for the specific purpose of providing
essential support to an outstanding student. The school, in turn, selected Miss Enh Hol, 20, as the recipient. The school
continues to work with the PATA Foundation to assess the value and benefits of such a grant.

36
 PROJECTS FUNDED IN 2016

Sala Baï Hotel & Restaurant School, founded in 2002, caters exclusively for young Cambodians coming from
underprivileged families. Each year, Sala Baï Hotel & Restaurant School trains 100 young disadvantaged Cambodians
to work as restaurant waiters/waitresses, cooks, receptionists and housekeepers in the hospitality sector. The training
lasts for 11 months from September to July with the final month of August dedicated to assisting the students in finding
their all-important first job.

4. Hospitality skills training for poor and marginalised women in Bali

The PATA Foundation provided support to eight students taking part in the hospitality skills training courses provided
by the ROLE Foundation in Bali that offers hospitality skill training with no tuition and support students till finish the
programme. The ROLE Foundation (Rivers, Oceans, Land and Ecology) is a non-profit humanitarian organisation
with the aim of improving the education, well-being and self-reliance of people living in underprivileged circumstances
whilst ensuring environmental resilience sustainability.

In recognition of the fact that a large number of families outside of Bali’s apparently prosperous, tourism-driven economy
live in poverty the BaliWISE component was initiated in 2011 and the Foundation’s activities were expanded to include
support to poor, marginalised and at-risk girls and young women through training and skills development.

Recognising also the value and importance of the tourism sector to the Bali economy, the training focus is on hospitality.
Monitoring of students has shown that, on average, 83 percent of BaliWISE graduates are employed in the hospitality
sector one year after graduation.

5. Sustainable tourism at Yongding’s world heritage site

This is a project that is exploring the sustainable development of the World Heritage sites in Yongding, China. The
project seeks to develop the sustainability of Yongding Tulou by investigating residents’ perceptions of capacity,
personal value and social capital.

The objective is to understand the operational scope of community sustainability and tourism development at Yongding
Tulou and to provide local tourism management with more effective win-win strategies for managers and local residents.

The research team on this project comprises faculty members and postgraduate students from Faculty of Hospitality
and Tourism Management, Macao University of Science and Technology. The project team is working with the Yongding
government and the Yongding Tourism Bureau to promote cultural and environmental sustainability in Yongding Tulou.
It is also an experiential learning programme for post-graduate students.

The Yongding Tulou is a type of Chinese rural dwelling of the Hakka in the mountainous areas in southeastern Fujian,
China dating back to the 12th century. A total of 46 Fujian Tulou sites were inscribed as UNESCO World Heritage
sites in 2008.

37
38
SUSTAINABILITY
& SOCIAL
RESPONSIBILITY

39
 SUSTAINABILITY & SOCIAL RESPONSIBILITY

PROTECTING OUR PLANET FOR TOMORROW’S TRAVELLERS

PATA has been a champion of environmental and cultural heritage since its inception. Measures taken to demonstrate
PATA’s stance on social responsibility include the 1970 conference on Tourism and Heritage Conservation; the adoption
of the APEC/PATA Code for Sustainable Tourism in 2001, and the establishment of the PATA Foundation. The annual
PATA Gold Awards includes a prize that honours best practices upheld by individuals or organisations in the protection
and conservation of the environment.

The PATA Sustainability and Social Responsibility Committee works tirelessly to address the issues and challenges
facing the industry by promoting policies that embrace the development of tourism in a sustainable and responsible
manner.

In 2016 the PATA head office in Bangkok achieved Silver-level Sustainability Certification from EarthCheck - the
world’s leading scientific benchmarking, certification and advisory group for the travel and tourism industry. The official
certificate handover ceremony took place during the PATA Annual Summit 2016 in Guam, USA.

The PATA team worked under guidance from EarthCheck in collecting and collating operational data and information on
its practices in order to be benchmarked against EarthCheck’s global sustainability standard. This important milestone
followed PATA’s previous achievement of Bronze Benchmarked Sustainability Certification in 2015. The benchmarking
data covers water and energy consumption, waste disposal, risk management, community contributions and the use
of paper, chemicals and cleaning products.

Stewart Moore, CEO and founder of EarthCheck, said that the Pacific Asia Travel Association is now recognised both
in the community and business tourism industry as a sustainability leader. PATA continued its commitment in 2016
to ‘tread lightly’ on the planet and took further steps to reduce its carbon footprint. PATA also adopted new ‘green’
standards at Association events and launched new guidelines on Responsible Business Travel. PATA continued to urge
members and the industry at large to leave a positive impact on the surrounding environments in which they operate
by helping to strengthen the industry’s understanding of the issues that require attention.

Details of PATA’s ongoing commitment to Sustainability and Social Responsibility are contained within a dedicated
website that features blogs, news, videos and ‘green’ tips.

40
CHAPTERS

41
 CHAPTERS

GRASSROOTS ENGAGEMENT

PATA Chapters continue to assist in the fulfillment of the objectives of the Association. They are, in essence, local
community organisations of travel industry professionals who join in a co-operative endeavour – within the framework,
principles, values and objectives of PATA – to develop travel and tourism to, from and within the Asia Pacific area.

In 2016 there were 38 active PATA Chapters around the world – each making valuable contributions to local travel
communities, to the Association and to the tourism industry at large.

CHAPTERS ROUND-UP 2016

CAMBODIA
The PATA Cambodia Chapter was only recently established and yet its members have already made substantial
contributions towards stimulating the nation’s tourism industry. Highlights of 2016 included ‘fam trips’ to Surin and Trat
provinces in neighbouring Thailand and to Malaysia. Chapter Chairman Thourn Sinan was a guest presenter in Korea
at an ASEAN eco-tourism workshop. Chapter representatives were also in attendance at the International Expo in
Sichuan province, China.

“Our Executive Committee and Secretary General have been working very hard to mobilise tourism-related
businesses to join our organisation. We have organised events to bring people in the travel industry together,
to build contacts, to promote their businesses, to strengthen their relationships, to help people to work together
and to support each other for their mutual benefit and to promote the industry for Cambodia,” said Chapter
Chairman Thourn Sinan.

CANADA
Highlights of the year for PATA Chapter Canada, led by Executive Director Barbara Dirnberger, were the PATA Pavilions
at three major B2B travel trade shows in Vancouver, Toronto and Halifax attended by 400-plus retail travel agents.
Each PATA Pavilion presented a strong and impressive Asia Pacific presence and made an important contribution to
raising the awareness of PATA's reputation and brand in Canada.

DENMARK
In addition to the regular monthly meetings the Denmark Chapter organised two Worldwide Workshops that each
attracted in excess of 150 participants. A major theme for discussion amongst Chapter members was ‘the travel industry
in 2020’ and whether consumers will still need the services of the traditional retail travel agency.

42
FINLAND

PATA Finland Chapter began the year with an Interaction Event and Seminar at the popular MATKA Nordic Travel Fair.
The Chapter’s series of PATA Basics events included a cooker class featuring Vietnamese cuisine; updates on travel
opportunities in Australia and a wine tasting evening featuring labels from New World vineyards. After collaborating
with India Chapter on a roadshow in Helsinki to promote ‘Incredible India’, the year ended with members joining a ‘fam
trip’ to Malaysia and Borneo.

INDIA

It was another very busy year for Chapter members in India. Eleven roadshows were held in the USA, Canada, western
and central Europe in partnership with India Tourism and local PATA Chapters to showcase ‘Incredible India’. More
than 80 delegates attended a seminar titled ‘Tourism is growing - seize the opportunity’ with PATA CEO Dr. Mario
Hardy as guest speaker.

The Chapter also strived to strengthen its relations with the country’s Ministry of Tourism through bi-annual meetings
that once again created platforms for open discussion about a range of issues and opportunities.
Three Chapter training sessions, on Product Development and Enrichment, Enhanced Selling Skills and Developing
Talent and Managing Employees’ were well supported.

MALAYSIA

In a packed programme throughout 2016 the Malaysia Chapter

instigated inter-Chapter networking events with Chapters in
Singapore and Thailand, exchanging ideas, sharing best
practices and exploring avenues for further development
through joint programmes. An Arabic language course was held
to equip employees working in the public and private sectors
with basic language skills.

A Crisis Communications Management workshop for business owners and senior industry executives focussed upon
the need to ‘protect the assets and the reputation of the tourism industry’ in Malaysia. The Chapter’s Tourism Career
Fair 2016 connected tourism and hospitality graduates from the country’s many universities and colleges with potential
employers.

A networking event with industry representatives from Sarawak provided the perfect platform
for enhancing inter-state connections and business opportunities.

43
 MICRONESIA
One of the many highlights in 2016 for PATA Micronesia Chapter was the hosting of the PATA Annual Summit by
the Guam Visitors Bureau (GVB) that was supported enthusiastically by Chapter members led by Chairwoman Pilar
Laguana, a recipient in 2009 of the prestigious PATA Award of Merit. The Micronesia Chapter also embraces Palau,
Northern Mariana Islands, the Marshall Islands, and the Federated States of Micronesia.

Chapter members were part of a delegation from Yap to ITF Taiwan – a major consumer travel show. Chapter members
also supported in Las Vegas the GVB delegation attending DEMA, the world’s only international trade-only event for
the dive industry, and also arranged a meeting with members of PATA New York Chapter.

NEPAL
The year began in Nepal with a Human Capital Development workshop on the ‘Tourism world & your career’ presented
by Professor Kaye Chon from Hong Kong PolyU that attracted more than 200 hotel and tourism management students
and Chapter members.

Professor Kaye Chon also presented at a Chapter workshop on ‘Innovations and leadership in hospitality and tourism’
attended by students, travel agents, tour operators, hoteliers and airline representatives.

The Nepal Chapter was a driving force behind the project to rebuild 420 homes damaged in the April 2015 earthquake
that took many Nepalese lives. The project concept was to build new homes in a traditional design that would then
create a heritage village to be promoted as an exciting new tourist destination.

In December the Chapter organised the launch ceremony for the 2017 Himalayan Travel Mart. Guests of honour
included PATA Chairman Andrew Jones.

NEW ENGLAND

The New England Chapter, with nearly 200 members, made great strides in 2016 to promote ‘Destination Education’.
The Chapter staged six separate meetings - each designed to highlight new destinations, provide effective networking
opportunities and explore avenues for utilising social media. The Chapter also organised its annual fund raiser in
conjunction with the Boston Globe Foundation to purchase gifts and books for children in need.

44
NEW YORK

The New York Chapter, led by Chairman Elizabeth Chin, was extremely active throughout the year in promoting and
supporting the Asia Pacific region. A busy March featured the PATA Trade Show and North America Travel Show.

April had a strong China focus with Suzhou city and Fujian province promoting its respective attractions at events in
New York. In May the Chapter was proud to promote ‘The Reopening of Nepal Tourism’ and also met a delegation
from China’s Guangdong province.

As the year progressed the Chapter welcomed delegations from other cities in China including Zhuhai, Beijing,
Shanghai and Chongqing. Chairman Elizabeth Chin found time in her busy schedule to attend PATA Travel Mart in
Indonesia.

PAKISTAN CHAPTER

The Pakistan Chapter membership worked closely with two major trade bodies - the Travel Agents Association of
Pakistan and the Pakistan Hotels Association – to add strength and depth to its activities. PATA CEO Dr. Mario Hardy
was guest of honour at a series of Chapter events in Lahore and Karachi. He visited training institutions, museums,
historic and archaeological sites, meeting with a broad cross-section of stakeholders in the country’s tourism industry.

The Chapter also hosted a visit by Miss Cassandra De Pecol, Ambassador for the International Institute of Peace
Through Tourism and Skal International.

In 2016 the Chapter gave special attention to domestic tourism opportunities in conjunction with the provincial tourism
organisations of Punjab and Sindh.

45
 SAN DIEGO
The year began in San Diego with a themed event on ‘social media for business’. In March the Chapter members
learned more about the leisure opportunities on the oceans and rivers within the PATA region. In May the Chapter joined
forces with Mexico Tourism and airline Aeromexico for a ‘Mexico Cross Border Experience’ event. The year ended in
style with a joint function with other travel organisations in the city of San Diego.

SAN JOSE

The main focus at Chapter meetings in San Jose throughout 2016 was to provide updates about new travel experiences
emerging throughout the Asia Pacific region.

Set against the background of PATA’s overriding mission to promote sustainable travel to, from and within this region
the San Jose Chapter also briefed its member agents about the small group luxury travel segment where clients enjoy
more opportunities to interact with local residents and are able to learn much more about cultures and traditional
customs. A mid-year presentation about New Zealand featured a make-up artist from the blockbuster movie trilogy
Lord of the Rings – filmed entirely on location in such places as Matamata where the Hobbiton village was created.

“The world of travel is changing and our focus is to help educate and relay the importance of the travel
professional and keep the agents in the spotlight of their clients,” said Chapter Chairwoman Audrey Cooper.

46
THAILAND
The Thailand Chapter’s programme in 2016 included presentations on the ‘state of tourism in Thailand and the Asia
Pacific region’, and ‘International Tourism Arrivals’ to the same markets. The Chapter supported the Digi.Travel Thailand
conference and also held a briefing session with the new Permanent Secretary at the country’s Ministry of Tourism
and Sports.

UNITED KINGDOM
It was an extremely busy year for PATA Chapter members in the United Kingdom with active engagement at grassroots
level through a successful series of quiz nights in cities ranging from Southampton and Guildford in southern to
Edinburgh and Aberdeen in Scotland.

The B2B PATA Exchange attracted a broad range of buyers and sellers keen to expand business opportunities whilst
the innovative ‘Taste of PATA’ event in London created a platform to update travel agents on the tourism scene across
the Asia Pacific region.

47
 FINANCIAL

48
 FINANCIAL

EXECUTIVE SUMMARY
PATA’s overall financial performance had been in decline for 6 consecutive years as a direct consequence of the fall
in numbers of paid-up members in the period 2008 – 2014 by 28 percent (equivalent to lost revenue totaling US$
600,000) and a weaker than expected performance in revenue generation from PATA events.

In 2016, prudent fiscal management and improvements in revenue generation from membership and from PATA events
produced a more sustainable financial position from which to implement longer-term objectives. The decision to deliver
more PATA events in a calendar year began the important step towards reducing reliance upon the PATA Travel Mart
as a major source of revenue. Other measures were taken to broaden the base of revenue streams.

This was the second consecutive year in which the Association returned, by comparison with recent year-end results,
a much stronger net bottom line surplus. The prudent fiscal management policies referred to earlier included firm focus
upon rebuilding the Association’s cash reserves and, as at December 31st 2016, this figure had risen to US$ 1 million.
The long-term objective remains to establish and maintain cash reserves of US$ 2 million.

In summary, 2016 was a year in which the Association repeated its success of 2015 by growing income from membership
and in increasing, by 7.5 percent against 2015, revenues from PATA Travel Mart. Although revenue generated from
other PATA events in 2016 was down compared to 2015 total income in 2016 was US$ 2.78 million, exceeding all fixed
and variable operating expenses by US$ 289,000.

Total Association revenue

$ 3.85m

$ 3.47m
$ 3.30m
$ 3.01m $ 3.11m
$ 3.97m
$ 2.78m $ 2.78m
$ 2.63m

Net bottom line results

49
 PACIFIC ASIA TRAVEL ASSOCIATION
Audited financial statements
For the year ending December 31, 2016

50
 PACIFIC ASIA TRAVEL ASSOCIATION
December 31, 2016

TABLE OF CONTENTS

Page

Independent Auditor's Report 52-53

Financial Statements

Statements of Financial Position 54

Statements of Activities 55

Statements of Cash Flow 56

Notes to the Financial Statements 57

Supplementary Information

Schedules of Functional Revenue & Expenditures 62

51
 PKF Audit (Thailand) Ltd.

Independent Auditor's Report

To the Board of Directors

Pacific Asia Travel Association
San Francisco, California
We have audited the accompanying financial statements of Pacific Asia Travel Association (PATA), which comprise
the statements of the financial position as of December 31, 2016 and 2015 and the related statements of activities and
cash flows for the years then ended, and the related notes to the financial statements.

Management's Responsibility for Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America. This includes the design, implementation
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error .

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits
in accordance with auditing standards generally accepted in the United States of America. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity's internal control.

Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of
Pacific Asia Travel Association as of December 31, 2016 and 2015 and the changes in its net assets and its cash flows
for the years then ended in accordance with accounting principles generally accepted in the United States of America .

PKF Audit (Thailand) Ltd. • 98 Sathorn Square Office Tower • 28th Fl. Unit 2812 • North Sathorn Road • Silom •
Bangrak • Bangkok • 10500 • Tel +66 2 1081591-6 • Fax +66 2 108 1599 • Emai:l info@pkfthailand.asia • Website:
www.pkfthailand.asia
PKF Audit (Thailand) Ltd. is a member firm of the PKF Internationa l Limited family of legally independent firms and does not accept any
responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.

52
PKF Audit (Thailand) Ltd.

Report on Supplementary Information

Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The information
on page 12 is presented for the purposes of additional analysis and is not a required part of the financial statements.
Such information is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the financial statements. The information has been subjected to the
auditing procedures applied in the audits of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to prepare
the financial statements or to the financial statements themselves , and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated
in all material respects in relation to the financial statements as a whole.

PKF Audit (Thailand) Ltd.

Bangkok , Thailand
April 7, 2017

53
 PACIFIC ASIA TRAVEL ASSOCIATION
Statements of Financial Position

December 31
2016 2015
Assets
Current assets
Cash and cash equivalents (Note 2) $ 1,564,319 $ 1,253,632
Short term investment (Note 4) 83,333
Accounts receivable 19,072 20,723
Due from affiliates (Note 3) 29,416 32,378
Prepaid expenses 65,199 58,169
Total current assets 1,678,006 1,448,235

Property and equipment (Note 5) 778,534 754,079

Less accumulated depreciation (664,182) (624,461)
Total Property and equipment 114,352 129,618
Total assets $ 1,792,358 $ 1,577,853

Liabilities and Net Assets

Current liabilities
Accounts payable $ 21,136 $ 27,192
Accrued liabilities 104,693 139,601
Membership dues paid in advance 617,843 635,501
Deferred revenue 25,679 41,640
Total current liabilities 769,351 843,934

Net assets
Unrestricted net assets
Undesignated 844,507 555,419
Designated - Sam N. Mercer Education Fund 178,500 178,500
Total net assets 1,023,007 733,919

Total liabilities and net assets $ 1,792,358 $ 1,577,853

See notes to the financial statements

54
PACIFIC ASIA TRAVEL ASSOCIATION
Statements of Activities

Year ending December 31

2016 2015
Revenue:
Membership $ 1,615,446 $ 1,613,445
Traditional programmes 859,797 1,055,861
Research and Intelligence 31,978 50,339
Other programmes 220,314 242,582
Other income 61,242 142,907
Total revenue 2,788,777 3,105,134

Expense:
Direct expense 761,719 859,932
Membership 384,411 386,774
Traditional programmes 125,520 212,730
Research and Intelligence 158,849 258,276
Other programmess 1,430,499 1,717,712

Indirect expense
Staff costs 750,401 615,417
Travel and representation 64,782 69, 551
Professional fees 68,929 53,574
Occupacy 73,062 50,291
Meetings and seminars 44,939 56,492
Other 67,077 94,031
1,069,190 939,356
Total expense 2,499,689 2,657,068

Change in unrestricted net assets 289,088 448,066

Unrestricted net assets, beginning of year 733,919 285,853

Unrestricted net assets, end of year $ 1,023,007 $ 733,919

See notes to the financial statements

55
 PACIFIC ASIA TRAVEL ASSOCIATION
Statements of Cash Flow

Year ending December 31

2016 2015
Cash flows from operating activities
Change in unrestricted net assets $ 289,088 $ 448,066
Adjustments to reconcile change in unrestricted net
assets to net cash provided by operating activities
Depreciation 39,927 40,193
Gain on sale of property and equipment (71) (576)
Change in operating assets and liabilities
Accounts receivable 1,651 92,773
Due from affiliates 2,962 11,442
Prepaid expenses (7,030) 20,156
Accounts payable (6,056) 3,426
Accrued liabilities (34,908) 37,431
Membership dues paid in advance (17,658) 85,578
Deferred revenue (15,961) (146,223)
Net cash provided by operating activities 251,944 592,266

Cash flows from investing activities

Proceeds from sale of property and equipment 71 576
Acquisition of property and equipment (24,661) (36,997)
Sale (purchase) of short term investment 83,333 (83,333)
Net cash provided by (used in) investing activities 58,743 (119,754)

Change in unrestricted net assets 310,687 472,512

Unrestricted net assets, beginning of year 1,253,632 781,120

Unrestricted net assets, end of year $ 1,564,319 $ 1,253,632

See notes to the financial statements

56
NOTES TO THE FINANCIAL STATEMENTS

1. Nature of business and summary of significant accounting policies

A. Nature of business

Pacific Asia Travel Association (PATA) “the Association” is a non-profit corporation in California, State registration
no. C2788038, organised to encourage and assist in the development of the travel industry throughout the
Asia Pacific region. The Association’s Headquarters are in Bangkok, Thailand and it has representation in
Sydney, Beijing and London.

B. Major programmes

The following are major programmes of the Association:

• Membership and Regional Programmes: This is the main business unit through which the Association
provides strategic links between and among the PATA members and Asia Pacific travel and tourism
professionals. These activities are carried out mainly through the Membership Department in Bangkok
and the Regional offices in Australia and China.

• Research and Intelligence: The Association has a Strategic Intelligence Centre that produces a series of
research publications with unrivalled statistics, analysis and forecasts focusing upon key markets around
the world.

• PATA Travel Mart (PTM): PATA Travel Mart is the region’s premier travel trade show. It includes pre-
matched and onsite appointments sessions linking buyers from around the world with sellers from Asia
Pacific. The Travel Mart is organised in September every year.

• PATA Gold Awards: PATA recognises exceptional achievement in a variety of endeavours, bringing acclaim
to the best that Asia Pacific’s travel industry has to offer.

C. Basis of presentation

The Association is required to report information regarding its financial position and activities according to three
classes of net assets: unrestricted, temporarily restricted, and permanently restricted.

D. Basis of accounting

The financial statements of the Association have been prepared in conformity with accounting principles
generally accepted in the United States of America on the accrual basis of accounting and, accordingly, reflect
all significant receivables, payables and other liabilities.

E. Significant Accounting Policies

Classes of net assets

• Unrestricted net assets: These represent funds that are fully available, at the discretion of management
and the Board of Directors, for the Association to utilise in any of its programmes or operations
• Temporarily restricted net assets: These are comprised of funds that are restricted by donors for specific
purposes or time periods. There were no temporarily restricted net assets of December 31, 2016 and 2015
• Permanently restricted net assets: These are subject to donor-imposed stipulations that they be maintained
permanently by the Association. There were no permanently restricted net assets of December 31, 2016 and
2015

57
 D. Basis of accounting

Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by
donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses
on investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets
unless their use is restricted by explicit donor stipulation or by law. Expirations of temporary restrictions on net
assets (i.e., the donor-stipulated purpose has been fulfilled and/or the stipulated time period has elapsed) are
reported as reclassifications between the applicable classes of net assets.

Revenue recognition, membership dues and deferred revenue

Membership dues are recognised as revenues in the applicable membership period. No revenue is recognised
if there are significant uncertainties regarding collection of membership dues. At the end of each accounting
period, dues received in advance are treated as unearned revenue and are included in membership dues
paid in advance.

Revenues from events such as Travel Mart are recognised in the year in which the event is held. At the end
of each year, any amounts received in advance for these events are recorded as deferred revenue.

Expense allocation

The costs of providing various programmes and other activities have been summarised on a functional basis in
the statements of activities. Accordingly, certain costs have been allocated among the programmes benefited.
Management and general expenses include expenses that are not directly identifiable with any other specific
function but provided for the overall support and direction of the Association.

Cash and cash equivalents

For the purpose of the statements of cash flows, the Association considers highly liquid cash investments with
maturities of three months of less when purchased to be cash equivalents.

Investments

Investments consisted of 7-month fixed deposit account and were measured at fair value.

Property and equipment

Property and equipment are stated at cost. The Association has a policy to capitalise property and equipment
expenditures in excess of $500 provided the asset has an estimated useful life in excess of one year from
the date of acquisition. Major additions and improvements to property and equipment are capitalised, while
repairs and maintenance are charged to expense as incurred. Capitalised lease improvements are amortised
over the period of their estimated useful life or lease period, whichever is less. Upon sales or retirement of
property and equipment, the cost and related accumulated depreciation are removed from the accounts and
any resulting gains or losses are taken into income or expense.

Depreciation

Property and equipment are depreciated on a straight-line basis over their estimated useful lives, which range
from 3 to 5 years. Capitalised lease improvements are amortised over the period of their estimated useful
life or lease period, whichever is less. For the year ended December 31, 2016 and 2015, depreciation and
amortisation expense amounted to $39,927 and $40,193 respectively.

Intangible assets

The acquisition cost of intangible assets is capitalised when the Association believes there is a long-term future
value. These intangible assets with a finite life are amortised on a straight-line basis over their estimated useful
lives and reviewed for impairment annually.

58
 Fair value of financial instruments

The Association believes that the carrying value of its financial instruments approximated their fair values. All
financial assets and liabilities that are being measured and reported on a fair value basis, require such assets
and liabilities to be classified and disclosed in one of the following three categories to enable readers of the
financial statements to assess the inputs used to develop those measurements:

Level 1: Quoted market prices unadjusted in active markets of identical assets and liabilities

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data

Level 3: Unobservable inputs that are not corroborated by market data

The financial instrument’s categorisation within the valuation hierarchy is based upon the lowest level of input
that is significant to the fair value measurements. In determining fair value, the Association uses valuation
techniques that maximise the use of observable inputs and minimise the use of unobservable inputs to the
extent possible, as well as considering non-performance risk, in its assessment of fair value.

The methods described above may produce a fair value that may not be indicative of net realisable value
or reflective of future fair values. Furthermore, while the Association believes its valuation methods are
appropriate and consistent with other market participants, the use of different methodologies or assumptions
to determine the fair value of certain financial instruments could result in a different estimate of fair value at
the reporting data (See Note 4).

Sam N. Mercer Education Fund

This fund is designated for use in the conduct of travel industry education and training programmes approved
by the Board of Directors of the Association. Interest earned by this fund is credited to the statements of
activities.

Exchange rate conversion

The Association’s Bangkok Head Office, Pacific region and China representative office (collectively as
divisions) record their transactions in local currencies for monitoring or local statutory reporting purposes.
Accordingly, assets and liabilities of these divisions with non-US Dollar functional currency are translated to
US Dollars using exchange rates in effect at the end of the period. Revenues and expenses are translated
using the currency exchange rates at which the US office transfers funds to the divisions, which approximate
the exchange rates at the dates on which those elements are recognised. Any resulting foreign exchange
gains and losses are included in the determination of the change in unrestricted assets for the period and is
reflected in the statements of activities.

F. Use of estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions the affect the reported
amounts of assets, liabilities, revenues, expenses and related disclosures. Actual results could differ from
those estimates.

G. Income tax

The Association is exempt from federal and state income taxes under section 501(c) of the Internal Revenue
Code. However, it is liable for income tax at normal corporate rates on its unrelated business income. The
Association had no such income in 2016 or 2015.

The Association has adopted the accounting guidance related to uncertain tax positions and has evaluated
its tax positions and believes that all of the positions taken by the Association in its federal and state exempt
organisation tax returns are more likely than not to be sustained upon examination. The Association’s returns
for years ended December 31, 2013, 2014, and 2015 are subject to examination by federal and state taxing
authorities generally for three years after they are filed.

59
 2. Concentration of credit risk
Cash with banks

The Association maintains cash balances at various banks. Generally, accounts at each bank are insured by
the Federal Deposit Insurance Corporation (FDIC) up to $250,000.

Investment with other financial institutions

The Association invests fixed deposit with a financial institution.

Cash with foreign financial institutions

The Association maintains cash in foreign financial institutions which are not federally insured. As of December
31, 2016 this amounted to $ 119,978 (2014: $366,435).

3. Related party transactions

PATA Foundation

The Association received revenues for management and accounting services from its related entity, PATA
Foundation, Inc. amounting to $4,800 for the year ended December 31, 2016 (2015: $4,800). This has been
included and shown as other income in the accompanying financial statements. As of December 31, 2016,
the amount due from PATA Foundation, Inc. was $29,416 (2015: $32,378).

4. Short term investment

As at December 31, 2015, short term investment represents 7-month fixed deposit account and bearing interest
at the rate of 0.50% per annum. Fair value hierarchy of short term investment is Level 2: Observable market
based inputs or unobservable inputs that are corroborated by market data.

5. Property and equipment

Property and equipment consists of the following:

December

2015 2016

Leasehold improvements $366,768 $351,338

Furniture and fixtures 74,483 73,074
Equipment 337,283 329,667
778,534 754,079
Less accumulated depreciation (664,182) (624,461)
Total property and equipment, net $114,352 $129,618

60
6. Lease commitments
As of December 31, 2016, the Association has various non-cancellable operating lease agreements for office
space and equipment for different divisions for a period of 1 - 4 years starting from May 20, 2015 to May 19, 2019.
Rental expenses for the year ended 2016 were $153,137. (2015: $162,868).

Future minimum rental payments under these leases are as follows:

Year ending
Monthly rental fee Commitment
December 31

2017 $ 12,101 $145,214

2018 $ 12,101 $139,678
2019 $ 11,486 $152,983
$337,875

7. Subsequent events

Subsequent events are events or transactions that occur after the date of the financial statements but before the
financial statements are available to be issued. The Association evaluates all subsequent events and transactions
to determine whether any transaction needs to be recognised or disclosed. The Association has evaluated all
subsequent events through April 7, 2017, which is the date the financial statements were available to be issued,
and has determined no events or transactions need to be recognised or disclosed in these financial statements.

61
 Pacific Asia Travel Association
Schedules of Functional Revenue & Expenditures
Years ending December 31st 2016 and 2015

Membership Event Research and Human Capital Total Management 2016 2015
and Regional Intelligence Development and
Programmes Administrative
Revenue
Programme revenue $ 102,334 $ 859,797 $ 31,978 $ 117,980 $ 1,112,089 $ - $ 1,112,089 $ 1,348,782
Membership income 1,615,446 - - - 1,615,446 - 1,615,446 1,613,445

Other revenue
Interest income 46 - - - 46 1,151 1,197 4,001
Other income 17,790 8,744 19,703 1,435 47,672 12,373 60,045 138,906

Total revenue 1,735,616 868,541 51,681 119,415 2,775,253 13,524 2,788,777 3,105,134

Expenses
Direct expenses 59,192 85,111 58,334 54,510 257,147 44,939 302,086 379,947

Other expenses
Staff costs 430,080 190,704 45,598 75,951 742,333 750,401 1,492,734 1,499,655
Travel and representation 72,053 23,267 737 3,568 99,625 64,782 164,407 165,666
Professional fees 94,991 - - - 94,991 68,929 163,920 164,372
Occupancy 39,183 32,291 11,051 11,271 93,796 73,062 166,858 179,758
Communication 4,173 1,425 384 377 6,359 3,041 9,400 11,987
EDP cost 9,453 14,062 4,317 6,296 34,128 17,595 51,723 51,549
General and administrative 46,783 21,019 3,077 4,599 75,478 33,156 108,634 163,941
Depreciation and amortisation 5,811 16,532 2,022 2,277 26,642 13,285 39,927 40,193
Total other expenses 702,527 299,300 67,186 104,339 1,173,352 1,024,251 2,195,440 2,277,121

Total expenses 761,719 384,411 125,520 158,849 1,430,499 1,069,190 2,499,689 2,657,068

Excess (deficiency) of revenue

over expenses $ 973,897 $ 484,130 $ (73,839) $ (39,434) $ 1,344,754 $ (1,055,666) $ 289,088 $ 448,066

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